Sales of Tiong Seng's condo projects in Balmoral, Orchard hit hard by cooling measures

Cairnhill 16 is a 15-storey freehold condominium in District 9. None of its 39 units have been sold. PHOTO: TSKY

SINGAPORE (THE BUSINESS TIMES) - Singapore's latest property cooling measures have affected the sales of construction group Tiong Seng's two condominium projects located in Balmoral and Orchard due to the higher additional buyer's stamp duty rates for foreign buyers.

Even so, the mainboard-listed company is optimistic that the resumption of international travel and the location of the two properties, Sloane Residences and Cairnhill 16, which are close to good schools and amenities, may encourage more sales.

Tiong Seng on Sunday (April 17) responded to questions from Securities Investors Association (Singapore), or Sias, about its annual report for the financial year ended Dec 31, 2021.

Sias had asked how the Government's cooling measures have affected the construction group's Singapore developments.

In its reply, Tiong Seng said the prices and transaction volume of non-landed private homes have declined in the first quarter of the year because of the latest measures.

In particular, homes in the core central region, where the two projects are located, were "hardest hit by the cooling measures with higher additional buyer's stamp duty rates for foreign buyers", said Tiong Seng.

Sloane Residences is a freehold 12-storey condominium located in Balmoral Road in District 10. Tiong Seng said 20 out of a total of 52 units have been sold. It expects the sales of the remaining units to pick up, with units ready for buyers to move in when the project is completed in mid-2022.

As for Cairnhill 16, a 15-storey freehold condominium located at 16 Cairnhill Rise in District 9, none of the 39 units have been sold. Sales and marketing started early this year, and the project is targeted for completion in the second half of 2023.

Sias also asked Tiong Seng to elaborate on the $20.2 million impairment loss arising from its property development business in China and, specifically, to give a breakdown of the $17.5 million in allowance for diminution in value of development properties by the different projects.

Tiong Seng said the $17.5 million arose from undeveloped land in its Equinox project located in Tianjin, China.

Shares of Tiong Seng closed flat at 13.9 cents last Thursday before the announcement.

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